Now Playing

11/11/2010 9:34AM

News Hub: Geithner, Greenspan Spar on Weak Dollar

Clyde V. Prestowitz Jr., president of the Economic Strategy Institute, discusses the increase in trade tensions, including a back-and-forth between Alan Greenspan and Timothy Geithner, over whether the U.S. has devalued the dollar to boost its competitiveness.

This transcript has been automatically generated and may not be 100% accurate.

Gou ... the ... U S Korea free trade agreement there are other initiatives the US is trying to accomplish ... for showing backlash over the Fed and the weak dollar has become an essential central theme there we won the special guest insurance margin Clyde Pressel its president and founder of the economic strategy Institute ... quite you know a thing or two about free trade what exactly do you make of the rhetoric against the U S bring out these meetings how significant is the US ... wanting it signals the gamble I also think that it saw ... in disingenuous and Ankai hypocritical ... on mainly on ... the reason that be a part of the reason that the U S Army is having to do ... quantitative easing high is because of ... the few him balances are that have ... become a weight on the growth of our economy in the ... Eirik huge trade deficit ... odd isn't right ... on our regenerating growth in the US economy ... Amber Bock is trying to do that now in ... the screening is that all of these countries are the Chinese Korean all the Asians ... are deep and significantly Onex forty three on two walks ... right so ... you know they walk the walk back on the Toric of around and those who are not the China Daily has outlined a prison Obama stake in meetings and look what's good for us growth is good for the world but let me just a couple of Commons agreed and your sense in controversy Alan Greenspan reading F C says ... America is also pursuing a policy of currency weakened incomes and says it is the former Fed Chairman ... I attended a meanwhile files backfires back telling CNBC we'll never seemed to weaken their currencies a tool to gain competitive advantage supplied again ... this really has become a quest that without question in U S motives and what it means for the rest of the world ... probably know I think it's a it's a iam ... on ... is a sideshow I mean a lot of Chinese and the Germans are trying to be flat ... attention on the real problem ... which is their chronic circle ... so instead of talking about the real problem that kind of China ... the flight to talk about the time ... of ... quantitative easing think what Alan Greenspan is also the guy who said that the market ... is soft tops the standings over just think ... if he just am ... I mean a lot ... like the supply of Alan Greenspan testified ... against regulation of derivatives ... so I don't know Alan is the last word on the side ... the client ... will quickly ... what he sees the best and worst-case scenarios coming out of the G twenty ... this week ... OT well first time ... I mean on the Jinchuan itself the best scenario ... would be actually an agreement on ... our specific ... on ... currency readjust ... now that's not my nap we know that so the second best scenario would be a real agreement on ... on the yen ... the proposal the guy in May which was ... countries with more than four percent Traister was the trade deficit ... media agreed saying Makers to adjust ... that would be the best scenario ... I am IPO but yet go ahead Monday where is the problem a mess for everybody else too because the city is in these imbalances are unsustainable ... the dangers to China and Germany as well if the viewer ... but the worst scenario of course is that they ... were they just break up ... of the meeting breaks up ... and have become is not evidence ... Oneda really clear-cut evidence ... of the crumbling ... of the art of of the current system of globalization on ... you know of me ... the world integration on what ... the flat world wants ... yes yes the risk at this point the last word on Friday night is on the Korean free trade agreement ... I think the best thing for Obama is not to have a dream ... on that agreement is not going to increase the U S ... on exports ... it's not gonna create jobs in the United States ... is not to do so because all these issues that they're arguing about ... follow regulations in the regulations are a sideshow they have ... very little to do with the overall fall train of Korea ... Korea is an extremely difficult country in which to enter ... is difficult in which to invest ... it's difficult to protect intellectual property in Korea ... on the US in that the International Trade Commission ... the independent body here in the U S now has these kinds of deals has ... has said that ... if we conclude that the large trade deficit will get bigger ... off I given that Obama needs for a jobs ... he doesn't include a snail that the greatest of the best thing for him to sit in in a magic pill the president for joining us this morning from